Supplementary Information files for Legal perception and finance: The case of IPO firm value

Supplementary Information files for Legal perception and finance: The case of IPO firm valueIn this paper, we contribute to the literature on institutional determinants of IPO valuation. We introduce the concept of ‘legal signaling,’ which focuses on the perception of the quality of law and thus complements the existing institutional approaches to IPO valuation which consider the quality of the positive law (‘standard view’) and firm-level corporate governance practices (‘firm signaling view’). Our approach explicitly models the difference between the effect of the positive law and the effect of the perception of law on IPO value. Based on a worldwide longitudinal dataset of IPO performance across a large number of countries, we find strong support for the claim that the perception of the quality of law is more important than its actual quality to explain post-IPO firm value. This effect holds regardless of whether the law’s quality is correctly perceived or misperceived. Overall, our findings underscore the need for a more sophisticated theorization of the ways in which law affects entrepreneurial finance.

本论文丰富了关于首次公开募股（IPO）估值制度因素的文献。我们引入了‘法律信号’的概念，该概念聚焦于对法律质量的认识，从而补充了现有的针对IPO估值的理论框架。这一框架既考虑了正法律（‘标准观点’）的质量，也考虑了公司层面的公司治理实践（‘公司信号观点’）。我们的方法明确地构建了正法律效应与法律认识效应对IPO价值影响的差异。基于全球范围内大量国家IPO业绩的纵向数据集，我们发现强有力的证据支持了以下论断：对法律质量的认知比其实际质量对解释IPO后公司价值更为重要。这一效应在法律质量被正确认知或误认知的情况下均成立。总体而言，我们的研究强调了深入探讨法律如何影响创业金融的必要性，并提出更为复杂的理论框架。